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Energy Policy Analysis, Monetary and Fiscal on Inflation Volatility in Indonesia

Author

Listed:
  • Srinita Srinita

    (Economic and Business Faculty, Universitas Syiah Kuala Darussalam, Indonesia,)

  • Kharisya Ayu Effendi

    (Economic and Business Faculty, Universitas Widyatama, Indonesia.)

Abstract

This study aims to analyze inflation's volatility as a combined phenomenon of energy, monetary and fiscal policies in Indonesia. By using secondary data in the form of a quarter-time series from 2011 to 2019. This study uses descriptive and quantitative data analysis techniques with the help of the Eviews 10. The findings are that all variables have a significant effect on inflation volatility in Indonesia except tax revenue. Thus, it is evident that the volatility of inflation in that country is not only influenced by the monetary side in the form of the money supply, interest rates, and the rupiah exchange rate against the US dollar as seen by monetarists, but is also influenced by the fiscal side in the form of government spending, and policy. energy, namely the price of oil and electricity tariffs.

Suggested Citation

  • Srinita Srinita & Kharisya Ayu Effendi, 2021. "Energy Policy Analysis, Monetary and Fiscal on Inflation Volatility in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 11(2), pages 309-314.
    • Handle: RePEc:eco:journ2:2021-02-38
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    References listed on IDEAS

    as
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    Cited by:

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    4. Xu, Lan & Wu, Yang, 2023. "Nexus between green finance, renewable energy and carbon emission: Empirical evidence from selected Asian economies," Renewable Energy, Elsevier, vol. 215(C).

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    More about this item

    Keywords

    Energy Policy; Monetary; Fiscal; Inflation;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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